EB Watch List Update Report

Dear Members: Market Update Nothing is going to come easy in this market even though there are signs of seller fatigue with all of the major indexes higher as we begin a new trading day and week. Last week saw some severe selling with traders wanting nothing to do with stocks. This resulted in the lowest prices seen since early May with all of the major indexes getting to oversold territory and MANY stocks moving to extreme oversold technical levels. The VIX is lower by 4% today but still remains at levels that are spooking traders; it's tough to nail a market bottom. But we may have seen some near term bottoming tails on all of the major indexes last week as we near the end of October and move out of what is historically a very wicked time for stocks and into what has historically been more trader friendly as we get ready to move into the month of November. So as we get ready to move into a more bullish time of the year we could also see some bargain hunting; remember, there are many stocks that are lower by 15-20% from their most recent highs that could be seen as very attractive. We still want to continue to be very selective here and not go "all-in" while keeping tight stops in case trades go against us. In the meantime the first major level of resistance to the upside on the S&P is 2765 to 2770 representing the 200 and 20 day moving averages, respectively. The bulls are going to have to work extra hard if they hope to get to those levels. To the downside we saw the S&P get as low as 2628 so that is now key support. Companies reporting earnings today (October 29) Before Market Opens: BLMN, BAH, CTB, DAN, FDC and ON After Market Closes EGHT, AKAM, AMKR, CLR, CACC, HSII, IDTI, KLC, KNL, MDLZ, NLS, RMBS, TCO, TKR and RIG Companies reporting earnings tomorrow (October 30) Before Market Opens: AET, AGN, AMT, AMRC, AN, BHGE, BP, KO, CTSH, CRVL, CMI, ETN, FCAU, FLIR, FDP, GE, HCA, HMC, HUN, I, KRB, LL, MAS, MA, BTU, PFE, SSTK, SNE, SHOO, UAA, and WH After Market Closes: AMGN, APC, BIDU, BXP, CAKE, TCS, RRD, EBAY, EIX, EXAS, FB, FEYE, HLF, H, MXIM, MGM, NBR, NCR, NTRI, OI, PAYC, PSA, SFLY, SYX, TMUS and YUMC ADDITIONS TO WATCH First, please note that we will be updating the Candidate Tracker sometime this week to capture those companies that beat bottom and top line expectations and could become high reward to risk trading candidates. We will let you know when it is updated. We added TTD to the Watch List on Friday and WSM and QNST to the Watch List this morning with additional details below. Also please note that we issued a trade alert on ATKR on Friday that said if it pulled back to $19.10 it would be added to the Watch List. It never got to that level and we are removing as a potential trade candidate and may revisit down the road. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List TTD - Stock is higher by 3% today though off the high of the day. Would like to see some strength as the day progresses and a close above the high of the day of $114.68 would be very bullish. WSM - Stock was added to the Watch List this morning at an entry price of $57.74 with a price target of $63.40 and a stop of any CLOSE below the 200 day, currently at $56.34. Would like to see strengthen some into the close and a close back above the high of the day of $58.07 would be bullish. Small Cap Watch List EXPR - Stock was removed from the Watch List on Friday. QNST - Stock was added to the Watch List this morning at an entry price of $13.24 with a second entry on any pullback to $12.90 with a price target of $14.60 and a stop of any CLOSE below $12.80. A close back above the 20 day moving average, currently at $13.55, would be bullish. Deletions from Watch List EXPR At your service, John Hopkins EarningsBeats